How in buggery has anyone worked this out?
How ironic to learn this week that the British government is resisting pressure to tax sugary foods just as Oprah Winfrey has announced she has purchased a 10% share in Weight Watchers. Oprah’s decision had immediate consequences: $700m in revenue for the weight-loss company over the course of the two days following the announcement;
Are they reporting sales in real time or something?
Winfrey announced on Monday morning that she had agreed to purchase a 10% stake in Weight Watchers International and had signed a collaboration deal to promote the diet company and its services. The announcement has caused shares of Weight Watchers to soar. With the stock changing hands for around $18, Winfrey has single-handedly generated $700 million in stock market value in two days, given that the company has 63.6 million shares outstanding following the Winfrey deal.
We have absolutely no idea what the revenue rise was. The value of the equity rose $700 million though.
And equity valuations and revenues are not actually the same thing. However, Liz Moore is ignorant of this fact, the Guardian’s editorial team, all of them, is ignorant of this fact, their subeditors are ignorant of this important distinction. And, presumably, most of their readership are.
Difficult to have reasonable discussions and conversations about the modern economy when half the people are just plain damn dumb on the subject, isn’t it?